Turmoil is putting the brakes on business: Leaders express dismay over shambolic handling of the economy
Business leaders expressed dismay over the Government’s handling of the economy in the past three weeks, labelling the Conservative Party’s actions shambolic and reckless.
Executives have watched in dismay amid a bond market rout and a sharp sell-off in the pound, all caused by a series of unfunded tax cuts announced by former chancellor Kwasi Kwarteng at the end of September.
There are serious question marks over whether the Tories can be trusted to manage the economy, something the party has always prided itself on.
Concern: There are serious question marks over whether the Tories can be trusted to manage the economy
Serial entrepreneur Luke Johnson said: ‘Businesses need certainty and we have the opposite of that. It was complacency to think foreigners would just continue to lend us money.
‘It may be that businesses have reached the decision that Labour will be elected.’
Justin King, the former Sainsbury’s chief executive now on the board of Marks & Spencer, warned that investment decisions had been delayed or cancelled as a result of the turmoil.
‘As uncertain a time as I can remember,’ he said.
Sir Martin Sorrell, the boss of the digital advertising firm S4 Capital, added that Liz Truss had lost all credibility, hinting that there could be a general election around the corner.
He said: ‘I can’t see how the Prime Minister can disassociate herself completely from past mistakes and policy. I expected more aspects to the U-turn in the speech, but that may happen with the fiscal plan.’
But there was some optimism and support for new Chancellor Jeremy Hunt among the business community, many of whom regard him as a safe pair of hands. Entrepreneur Brent Hoberman said: ‘He’s serious and sensible, hopefully he’ll stabilise the economy and the country.’